Accounting question. Please place your bids need in 1 hour!

timer Asked: Apr 25th, 2017

Question description

On February 11, 2015, Bill inherits his fatherÃâs summer home. The house, located in South Lake Tahoe, Nevada, has a fair market value of $550,000 at the date of his fatherÃâs death. His parents had purchased the house in 1977 for $140,000 and made $122,000 worth of capital improvements to it. Twenty percent of the total value of the property is attributable to the land. Because Bill and Joyce ultimately would like to use the property as a vacation home, they decide to rent it out. Bill actively participates in the management of the property. The property is first advertised for rent on March 1, 2015, but is not rented until April 15, 2015. Bill provides the following income and expense information for the Lake Tahoe rental property:

Rent $21,000

Repairs 6,250

Management fee 4,800

Property taxes 15,100

Insurance 3,500

In addition, Bill buys a new stove for $1,800 and a new refrigerator for $1,450 on March 20, 2015.

Complete Form 4562

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